Ask The Experts: Retirement

By Reg Jones

Retirement benefits under both systems

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Q: I plan to retire next year at age 62. I had 10 years of service under the Civil Service Retirement System. I took a 15-year break and returned under the Federal Employees Retirement System. I have 19 years under FERS. I will receive retirement benefits under both systems. I understand my Social Security benefits will be reduced due to the Windfall Elimination Provision. My question is, will the reduction be based on just the CSRS portion of my annuity or on the full annuity (FERS and CSRS)?

A: The reduction will be applied to your entire annuity, not just the CSRS component.

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Comments

  1. BIll Says:
    November 24th, 2009 at 4:14 pm

    Re:WEP calculation – Only your frozen CSRS annuity will be used in the WEP calculation. You paid into Social Security for all 19 years of your FERS service.

  2. susan Says:
    December 17th, 2009 at 6:37 pm

    BIll is correct. Only that portion of your annuity which is based on earnings for which you didn’t pay Social Security taxes is subject to the WEP. My benefits office kept insisting otherwise and I had to write directly to SSA for the correct information.